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Amazon Uses Math to Explain Why It Prices E-Books at $9.99

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Amazon CEO Jeff Bezos famously picked the $9.99 price for e-books out of "thin air." But in a blog post published Tuesday, the company offered some numeric justification for the figure.


The $14.99 and $19.99 prices for e-books is "unjustifiably high" since "there's no printing, no over-printing, no need to forecast, no returns, no lost sales due to out-of-stock, no warehousing costs, no transportation costs, and there is no secondary market — e-books cannot be resold as used books. E-books can be and should be less expensive," according to the post by the Amazon Books team.



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